Finance Minister Steven Joyce presented his first Budget in Parliament at 2pm today. This is his first Budget as Finance Minister and the Ninth for the National Party since occupying the Treasury benches in November 2008. We will bring updates continuously over the next few hours and conclude with our own exclusive analysis of the governments Fiscal Policy later tonight.

-Editor

New capital investment takes $4 billon

Steven Joyce

The Government is allocating $4 billion in new capital spending as part of Budget 2017 as it builds the infrastructure for a growing economy.

This $4 billion investment is the single biggest investment of new capital in one Budget by any government in decades. And it is just the beginning. We have reserved a further $7 billion in new capital for the following three Budgets.

The Investment Invoice

The new capital spending in Budget 2017 includes:

$812 million for the reinstatement of State Highway One north and south of Kaikura.

$450 million for rail infrastructure and rolling stock for KiwiRails rail network around New Zealand.

$436 million for the first stage of Aucklands City Rail link which will greatly boost the capacity of the commuter rail network in central Auckland.

$98 million for upgrades to Wellingtons commuter rail network.

$392 million for six new schools, two school expansions, 11 special education satellite units, and 305 additional classrooms nationwide.

$150 million in additional capital towards the new building programme for hospitals around New Zealand.

$576 million for the Defence Forces for new equipment and the commencement of the upgrading of the Defence Estate.

$763 million for new prison capacity around New Zealand.

$100 million to expand the Governments programme to release Crown land for housing development around the country.

$63 million for investing in new water storage infrastructure in regional New Zealand.

Budget 2017 also lays out for the first time the Governments total investment in new capital infrastructure over the forecast period.

The Government will invest a total of $32.5 billion over the next four years in new infrastructure, which is a 40 per cent increase on the last four years.

Channels of Expenditure

This investment will be made through core Government agencies, plus the big infrastructure agencies, like NZTA, KiwiRail and Housing New Zealand.

The New Zealand Transport Agency alone will invest $9.17 billion in new State Highways over the next four years, and will open over 540 lane kilometres of new highways.

And Housing New Zealand will invest $2.2 billion in the Auckland Housing Programme as announced by Minister Adams last week.

Of the $32.5 billion programme, $1.7 billion is being funded through public-private partnerships including the Transmission Gully and Phoi to Warkworth roading projects.

The Government intends to leverage our already significant infrastructure investment through the further use of public-private partnerships and joint ventures between central and local government and private investors to deliver an even larger infrastructure programme.

One of the benefits of a strong economic plan and strong growth is the capacity to build the new infrastructure that people expect in a modern successful economy.

We see that in new roads, new trains, new schools and hospitals, and big recent investments in electricity transmission and ultrafast broadband.